---
title: "What is Shirkat al-milk (co-ownership)? | IslamicOpenFinance™"
description: "Co-ownership of an asset by two or more parties, whether by choice, as in a joint purchase, or by circumstance, as in inheritance."
url: https://islamicopenfinance.com/glossary/shirkat-al-milk/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Partnership and investment](https://islamicopenfinance.com/glossary/#partnership)

Partnership and investment

# Shirkat al-milk (co-ownership)

Co-ownership of an asset by two or more parties, whether by choice, as in a joint purchase, or by circumstance, as in inheritance.

Shirkat al-milk is partnership in ownership: two or more parties jointly own an asset, voluntarily or involuntarily, as when heirs inherit together. The IFSB's definition adds that profit and loss sharing follows each partner's equity. It is distinguished from shirkat al-aqd, a contractual partnership formed to do business, and co-ownership of this kind is the starting point for diminishing musharakah.

## Sources

- [IFSB-23 Revised Capital Adequacy Standard (Banking Segment), 2021: Definitions, Musharakah (sharikat al-mulk)](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-23_En.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Musharakah** A partnership in which each partner contributes capital; profit is shared as agreed and loss in proportion to capital.](https://islamicopenfinance.com/glossary/musharakah/) [**Diminishing musharakah** A partnership in which one partner buys the other's share in stages until it owns the whole asset; common in home finance.](https://islamicopenfinance.com/glossary/diminishing-musharakah/)

**Partnership and investment**

1. [Mudarabah](https://islamicopenfinance.com/glossary/mudarabah/)
2. [Musharakah](https://islamicopenfinance.com/glossary/musharakah/)
3. [Diminishing musharakah](https://islamicopenfinance.com/glossary/diminishing-musharakah/)
4. [Rabb al-mal](https://islamicopenfinance.com/glossary/rabb-al-mal/)
5. [Mudarib](https://islamicopenfinance.com/glossary/mudarib/)
6. [Profit sharing ratio](https://islamicopenfinance.com/glossary/profit-sharing-ratio/)
7. [Restricted mudarabah](https://islamicopenfinance.com/glossary/restricted-mudarabah/)
8. [Unrestricted mudarabah](https://islamicopenfinance.com/glossary/unrestricted-mudarabah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)